This is the last post in my series on metrics for evaluating the effectiveness of web site content. Over the last five weeks I’ve presented five metrics that you can use to benchmark site performance basaed on content and navigation effectiveness. Today's metric, Task Completion ROI, is built on the first metric I presented: Task Completion Effectiveness (TCE). It is actually pretty easy to calculate, and it is a great way to introduce concepts of value to content in organizations where this connection isn't seen clearly, such as government, healthcare, non-profits or corporate intranets.
Task Completion ROI: Measures ROI in Web site operations, content, applications, and labor relative to the budget spent on these initiatives.
Calculation of Task-Completion ROI: Number of task completions multiplied by a dollar value given to each task-completion type compared with the total spent on creating the task application or with the avoided-cost alternative to offline.
Calculation Note: Total expenditures will need to be determined based on budget allocation, set-aside funds, hourly labor rates, etc. Dollar values for completion of tasks will need to be assigned based on the calculated cost of completing the task offline. Find out the costs for developing the application, the marketing program, the event, the video development, and then estimate a value for the completed task based on a time and materials calculation if the task had to be completed offline. Then add a “goodwill” value.
Goodwill, according to the Merriam-Webster definition is “the favor or advantage that a business has acquired especially through its brands and its good reputation; the value of projected earnings increases of a business especially as part of its purchase price; the excess of the purchase price of a company over its book value which represents the value of goodwill as an intangible asset for accounting purposes.” So, you’re adding in “goodwill” over the costs. Sound like a stretch? Maybe a bit…think of this as a conversation starter or straw man for valuing content that may not have a clear dollar value. Even better, find out from the sponsors of the application what their business and revenue goals are before it ends up on the web site.
Example: There were 130 submissions of grant applications during the month. Each submission is valued at $200. This amount is based on the time saved by having the applicant enter the data directly into the database, rather than having staff transcribe the data from printed forms. This results in avoided cost or savings of $26,000.
Another Example: Calculate and compare the cost and success rates associated with promoting research studies and grants in the offline channels and the online channels to determine which one was most effective at attracting qualified applicants.
So, that about does it for this series. If you come up with other metrics for evaluating content sites, let me know. I think this is an area that could use some additional development.